Earned Income Tax Credit could be life-changing windfall for many | Opinion

If you think of $80 million in one person’s hands, that’s a fortune. If you consider that amount divided among 26,000 eligible households close to the poverty line, that’s still a tremendous windfall.

It’s money to put food on the table or pay the electric bill and could be life-changing in the lives of low-income, working families. Sadly, that’s a large portion of our population, and that’s why we need to encourage those in need who meet the requirements to file for their Earned Income Tax Credit.

In 2016, according to the Center on Budget and Policy Priorities, the EITC lifted close to six million people out of poverty, including about three million children. Studies show that the EITC encourages large numbers of single parents to leave welfare for work, especially when the labor market is strong. Nearly nine million children in working families lived below the official poverty line (about $24,000 for a family of four) in 2016.

In 2018, 25 million eligible tax-filers received about $63 billion in EITC, however, the IRS and U.S. Census Bureau estimate this number only represents 80 percent of those who are eligible for the credit. There is some recourse for those who qualified but did not file since it is possible to amend taxes for up to three years.

Taking the step to receive a tax credit is daunting for many, who don’t realize they are missing out on money they badly need. In the spirit of “people helping people” that credit unions are founded on, we want to make people aware of this unclaimed resource that averages just under $2,500 per family. Requirements include:

Must have earned income from the tax year.

Income must be less than $45,802 for single people with two children.

Income must be less than $51,492 for married couples filing jointly with two children.

Income must be less than $49,194 for single people with three or more children.

Income must be less than $54,884 for married couples filing jointly with three or more children.

Please help share this message on the importance of filing for the EITC. It can make a huge difference in the quality of life for working families.

Patrick La Pine is president/CEO of the League of Southeastern Credit Unions and Affiliates, which represents 243 credit unions in Alabama and Florida with a combined total of $88 billion in assets and more than 7.8 million members. For more information, visit www.lscu.coop.